Policy Audit Topics: City Systems - Infrastructure, Transportation & Sustainability

8/7/2019 Policy Audit Topics: City Systems - Infrastructure, Transportation & Sustainability

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HAPPOLD CONIN-PROGRESS: DECEMBE

PHASEONE:RESEARCHANDPRIORITIESPOLICYAUDITTOPICS

CITYSYSTEMS INFRASTRUCTURE,TRANSPORTATION,&SUSTAINABILITY

INPROGRESSV2 DECEMBER


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PHASEONE:RESEARCHANDPRIORITIES

AUDIT ORGANIZATION

CITYSYSTEMS INFRASTRUCTURE,TRANSPORTATION,&SUSTAINA

TABLEOFCONTENTS

PREFACE

INTRODUCTION

SYSTEMSOVERVIEW&AUDITOBJECTIVES

AUDITOBJECTIVES

DEFININGCITYSYSTEMSDETROITOVERVIEW

DETROITSYSTEMSOVERVIEW

AUDITMETHODOLOGY

ANALYSIS

DATACOLLECTIONAPPROACH

EXCLUSIONSDATAMETRICS

EXTENTS

FUTUREINTEGRATION

SYSTEMSREVIEW

WATER,ENERGY,WASTE,TELECOMS UTILITIES

ROAD,PUBLICTRANSIT,AVIATION TRANSPORTATION

BORDERCROSSINGS,LOGISTICS&FREIGHT TRANSPORTATION

CASEFORCHANGE

DETROITSKEYSYSTEMS

EMERGINGCHALLENGES

POTENTIALMEASURES

TRANSFORMATIONALIDEASEMERGINGTRANSFORMATIONALIDEAS

PHASE2AANDNEXTSTEPS

0

1

2

2.1

2.22.3

2.4

3

3.1

3.2

3.33.4

3.5

3.6

4

4.1

4.2

5

5.1

5.2

5.3

66.1

6.2


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0 PREFACE


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POLICYAUDITTOPIC:CITYSYSTEMS INFRASTRUCTURE,TRANSPORTATION&SUSTAINABILITY


0.0 Preface

COMMONTEXTTOBEPRODUCEDBETWEENALLCONSULTANTS

THE DETROIT WORKS PROJECT POLICY AUDITS


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1 INTRODUCTION


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1.0 Introduction

ThisPolicyAuditisoneofseveral,producedinthefirstphaseoftheDetroitWorksProject,bytheTechnicalTeam.

HappoldConsultinghasdraftedthisAudit,anditcontainsresearch,analysisandinsight,withregardsto;

Infrastructure&Utilities

Transportation

FiscalArchitecture

ThesystemsandmodesstudiedwithinthisAuditareoutlinedinthepageswhichfollow,butessentiallyconsistofEnergy,Telecoms,PublicLighting,Waste,Water,Roads,Border

Crossings,PublicTransit,Aviation,Ports,Nonmotorizedtransportroutes,andrail.

Inadditiontoanurbanandphysicalunderstandingofeachofthese,afiscal

understandingisdeveloped,inordertounderstandtheperformanceandbehaviourof

thesesystemsintheeconomy.

Theanalysisbuildstowardsanunderstandingofthechallengeseachofthesesystemsfaces,theseverityofeach,andtheapplicabilityofarangeofpotentialmeasuresto

each.

Conclusionsaredrawnastowhatthemostappropriatemeasuresmightbetoaddressthesechallenges,whichlaydownresearchandscenariomodellingavenuesforthe

futurephasesoftheproject,andopportunitiesforinterlinkageswithotherPolicyAudits

beingundertakenaspartoftheDetroitWorksProject.

THE CITY SYSTEMS POLICY AUDIT

1.0


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2 SYSTEMSOVERVIEW&AUDITOBJECTIVES


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CURRENTPHASE:PolicyAudit

Evidence

based

analysis Integratedbaselinesetting

outthechallengeand

opportunitiesfacingDetroit

DetroitWorksPro

jectphases

1

2a

2b

3

4

2.1 Audit Objectives

THE DETROIT WORKS PROJECT - PHASE 1 POLICY AUDITS

Neigh

bor

hood&

Housing

Infra

structure

&Trans

portRegio

&C

Urb

For

Pub

Lan

Deveme

Econ

omy

Ecology

&

Land

scape

2.1


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CurrentStatusin2010

1. Provideoverviewof

currentstructure,

coverageandgovernance

ofcitysystems2. Assessadequacyofthe

servicesprovided

3. Reviewthefinancialand

environmental

sustainabilityofthese

systems

SUSTAINABLEINFRASTRUCTURESYSTEMSAREESSENTIALTOTHEFUTURE

PROSPERITYANDQUALITYOFLIFEOFALLDETROITCITIZIENS

2.1 Audit Objectives

THE CITY SYSTEMS POLICY AUDIT - OBJECTIVES

FutureStatus(to2035)

1. Assesskeytrendsin

population,employment,

spatialplanningand

governancewhichwill

impactdirectlyoncity

systems

2. Identifytheextentof

investmentprograms

plannedforeachsystem

3. Assessfutureadequacyof

systemsinthelightof

these

trends

MAKETHECASE

FORCHANGEAssessopportunitiesand

challenges against

potential measures

Phase

1

2.1


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2.2 Defining City Systems

Strongsystemsarerequiredtosustain

andenhancethecityovertime

A city is defined by its people, its environment

and its economy and by the pattern of spatial

distribution/connectivity between them

DETROITS KEY SYSTEMS

2.2


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HAPPOLD CONIN-PROGRESS: DECEMBEDETROITWORKSPR




FOR EACH SYS

THE AUDIT WI

COVER:

RegionalResourc GovernanceStruc

Demand/supply

Networkcoveragquality

FiscalPosition

PlannedProjects

Benchmarks

Keychallenges/PMeasurestobea


KEY SYSTEMS COVERED BY THE AUDIT

Roads

Public

Transit

WasteCollection

Disposal

Recycling

PublicLighting

Telecoms

EnergyElectricity,

gas,steam

WaterPotable,

wastewater

stormwater

Non

motorized

Maritime

RailFreight

Passenger

Utilities Transportation

Aviation

Inter

national

Crossing

Points

2.2


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ANALYZING CITY SYSTEMS

1. Parameters: Elementssuchasthenumberofpeopleandeconomicunitsplacingdemandsonthesystem,the

resourcesavailabletofulfilthedemand,andtheconfigurationofthecityandthesystemnetworksthroughwhich

thesystemsoutputistobedelivered.

VIEWPOINT:SUPPLYVIEWPOINT:DEMAND

In analyzing city systems as fiscal, economic and financial systems of entities, it is important they be viewed from both a Supply side

Demand side. We strove to examine each of these viewpoints through 4 lenses, which are explained below:

2. Control: Waysinwhichthesysteminquestionisregulatedorcontrolled. Dependingontheviewpoint,thismight

downtomarketforces(e.g.acertainamountofelectricitydemandedexertsacertainamountofcontrolonthe

electricitysystem)ortoregulationbyvariouslevelsofgovernment.

3. Technical: Thislensisconcernedwiththetechnicalphysicalparametersofthesupplyanddemandsidesofa

givencitysystem,suchasnetworktypologies,extents,age,capacities,adaptability,etc.

4. Financial: Themoneyelementsofagivencitysystem. Thislenslooksatmoniesreceivedintermsof

fundingtoprovideagivenservice,moniesreceivedinrevenuefrompaymentsforprovision,andthecosts

todistributeaservice,whilstmaintainingthenetworkandpayingfortherawresources.

LENSES

2.2


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ANALYZING CITY SYSTEMS

Population EconomyNatural

Resources

CityForm&

Connectivity

Demand(Currentlevels/future

trends)

Revenues

(Current

levels/

future

trends)

Supply(Currentcapacity new

capacity/obsolescence)

Network(Currentextents new

capacity/obsolescence

Operation(Currentlevels/future

trends)

Market

StructureGovernance&Regulation

CostOperation,Maintenance,Reinvestment

2.Control

3.Technic

al

4.Fin

ancial

1.Parameters

The diagram below illustrates the interactivity between the elements of each lens, and serves to emphasize the importance of a cit

systems analysis which takes these 2 viewpoints and 4 lenses into account. The major changes seen in Detroit in recent history wi

have a different way of influencing each of these elements of the diagram below and affect how city systems can and ought to be

adjusted.

VIEWPOINT:SUPPLYVIEWPOINT:DEMAND

LENSES

GAP?

2.2


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INFRASTRUCTURE SYSTEMS FORM A MAJOR

PART OF A CITYS ASSETS

Infrastructuresystemsplayamajorroleinnationalandregionaleconomicdevelopment,

throughimproving:

QualityofLife:keyforattractingpeopleandtherebyinvestors,industryand

occupiers

Prosperity:catalystforagglomerationeconomicsandcreatingindustrialclusters

Competitiveness:majorpartoftheproductionandcostfunctionsofindustry

Forexample,transportinfrastructureiscrucialfor:

Efficientlogistics,businessconnectivityandgeneratingtransportationjobs

Linkingpeopletojobsandeducation

Creating

sustainable

places

and

communities

THE SCALE OF CHALLENGE IS GROWING DU

TO POPULATION DECLINE

Citypopulationdecline hasresultedinexcessavailablesupplyandfiscalchallenges

continueoperationsandmaintenanceforexistinginfrastructure.

Changeincostperunitofwater,DWSD1


WHY CITY SYSTEMS MATTER AND THE IMPACT OF POPULATION DECLINE

Highfixedcostsmean,as

consumptiondrops,unitcosts

increase

Source:1.SEMCOG,2010

2.2


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INFRASTRUCTURE CONTEXT

City Systems can

shape developmentThedeclineinDetroithasresulted ina

majordisconnectbetweencity

systems,andthesystemsdependents.

Targetedinterventionsonthevarious

city

systems

in

specific

locations

can

actastacitincentivizationfor

movementofdensitywithinthecity,or

provideplatformsforgrowthinparts

ofthecitywheregrowthissustainable.

Investment climate for

Infrastructure is richPlansforinvestmentannouncedata

federallevelunderthecurrent

administrationpointtoasignificant

increaseininvestmentintransportand

infrastructure

over

previous

years.

The

DetroitWorksProjectwillseektosteer

thecityinthedirectionofoptimal

fundsandoptimalusageoffunds,to

takemaximumadvantageofthisrich

investmentclimate.

A push for

Environmental

SustainabilityPublicandgovernmentsupportfor

greener,moreefficient,more

ecologicallybenignandmore

sustainableinfrastructureand

transportationsystemsisatanalltime

high. Thisisreflectedinboth

regulationandincentivization

programmesatalllevelsof

governance. Thereisanopportunity

forDetroittoreformitscurrent

sustainabilityprofile,bytaking

advantageoftheneedforlargescale

changeandtheavailabilityoffunding

forinnovativenewsustainable

interventions. Thetimeisnow,and

thelifespanofmostcityinfrastructure

meansthatifthesustainablechoices

arenotmadenow,theywillnotbein

placeforthesubsequenthalfcentury

at

least.

Negative attention -

positive energyWhilstDetroitmightbethefocusofa

certainamountofnegativeattention

atpresent,itisimportanttoremember

thatitsuniquesituationatpresentalso

means

it

has

access

to

certain

unique

governmentalopportunitiesfor

support,aswellasaparticularlystrong

bottomup,grassrootsbaseof

intelligenceandinnovation,from

communityorganizationsandthe

generalpublic. Thepopulationand

organizationsofDetroitareafontof

informationanddata,andwillbean

importantresourceindetermining

howtheurbansystemsofthecity

oughttobeadjustedoverthelifeof

thisproject.

2.2


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2.3 Detroit Overview

COMMON SLIDES TO BE COMPLETED BY TECHNICAL TEAM

Scales

Regional overview

Population projections Employment projections

Population density (regional)

Population density (city)

Detroit Economic profile Employment locations

Commuting patterns

Detroit Environmental profile

Detroit Social issues profile

2.3


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2.3 Detroit Overview

CITY ORGANIZATIONAL STRUCTURE

2.3


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2.3 Fiscal Overview

CITY FINANCIAL POSITION

EXPENDITURESGENERALLYRISING Expendituresinthecityexceededrevenuesin5outofthelast8years

Currentdeficit

REVENUESVOLATILEANDDECLINING Revenuesarevolatileandnotrisinginlinewithexpendituresduetolimited

pricingcapabilitiesandfallingpopulation

Revenuesaremainlygeneratedfromtaxesandsalesandservicecharges

nearly70%

OVERALLFISCALPOSITION Verydifficultfiscalpositionwithanincreasingdeficitovertheperiod

Giventhedecreasingpopulationandemploymentnumbers currentand

forecast,thefiscalpositionwillremainchallenging

ThecurrenttaxburdeninthecityishighrelativetotheMichiganaverage

Increasingtaxesinthefuturetobalancethebudgetwillbedifficultgiventhe

economicconditionsandmayharmeffortstoattractbusinessesandpeopleto

thecity

2.3


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2.3 Fiscal Overview

HISTORIC CITY BUDGET

TAXES Propertytaxescannotriseanymoreasthesearecurrentlysetatthe

highestlevelallowedbytheStateofMichigan

UtilityuserstaxisalsosetatthehighestallowedbytheState

REVENUES Themajorityarefromnondepartmental(municipalincometax,

propertytax,staterevenuesharing,etc)andenterpriseagencies

FUNDING

CHALLENGES Thecitysabilitytogeneratemorefundingthroughitsnondepartmentalactivitiesmaybelimited,especiallythatithas

exhausteditstaxraisingabilitiesanditispartlyfundingtheactivities

ofsomeoftheenterpriseagencies

CURRENTACTIONS ThroughtheKresge Foundation,McKinsey&Co.havebeencontracted

toconductareviewofcityagenciestoidentifygreaterefficiencies

thatcanbeappliedintheshorttermtohelpthecityimproveitsfiscal

conditions.

2.3


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2.4 Detroit Systems Overview

OneofthegreatAmericanCities 4th largestcAmericaatitshighpoint(early1950s)

Technologicallyadvancedforitsday thequasheerscaleoftheinfrastructuralsystemsput

staggering.

Detroit

now

has:

(Region) Greatrail(andevenbetterrailpotential

Water,water,water!

InterstateHighways

Anabundanceofairfields(circa35)

ManyinternationalconnectionsintoCan

Goodports(andpotentialformorethro

DETROITS RICH CITY SYSTEMS LEGACY


2.4


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2.4 Detroit Systems Overview

DETROITSORIGINALGROWT

WASFOUNDEDONSTRONG

INFRASTRUCTURESYSTEMS,T

CHALLENGE

NOW

IS

TO

MAKETHEMRELEVANTTODETROIT

ISNOWANDWILLBEIN2035

Forexample:

TransportationInfrastructure:

Internationalbordercrossings

TheAmbassadorBridgeisthebusiestbordercinNorthAmerica(27%ofthetotaltradebetw

U.S.andCanada).

StrongRailroadNetworkandkeycrossborderroutes

WaterInfrastructure

TheDetroitWastewaterTreatmentPlantisthesinglesitewastewatertreatmentfacilityinthe

States. Howeveritisaging,anditscentralized

meansitisnotasresilientinthefaceofacha

Detroitassuchasystemoughttobe.

DETROITS RICH LEGACY


2.4


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3 AUDIT METHODOLOGY


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3.1 Analysis

OVERALL ANALYSIS APPROACHThis policy audit will include examinations of the following, for transport modes,

and utilities.

OverviewTheoverviewofeachmodeorutility

willprovideanoutlineofthekey

characteristicsofthesystem,suchas

whatserviceitprovides,towhom,how

itisdelivered,andwhere.

GovernanceThisexaminationwillexplainhowthe

utilityormodeisgoverned

hierarchically(federal,state,city)and

howandbywhomtherequired

governancefunctionssuchas

regulation,finance,operationand

delivery

are

undertaken.

Resources & NetworkThissubsectionwillbrieflyoutlinethe

physicalityoftheutilityormodein

question. I.e.whatresourcesare

requiredtoproducetheutility(e.g.

coalforelectricity)andwheredoesthe

networkconsistof(e.g.cablesof

various

voltages,

for

electricity).

The

networkswillalsobemappedspatially

inthissection.

Planned ProjectsBasedonresearchandmeetingswith

therelevantgoverningbodies,this

sectionwilloutlinetheongoing

projects,aswellasthoseplanned,

whichpertaintothemaintenance,

development,oralterationofthe

modes

and

utilities

in

question.

NOTE: Whereacertainareaofanalysislistedaboveisnotrelevant,orwheredatawasunavailable,anexclusionwillbemade(see3.3).

3.1


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3.1 Analysis

OVERALL ANALYSIS APPROACH

Fiscal PositionBasedonresearchandinteraction

withtherelevantorganizations,the

fiscalpositionofeachutilityand

mode

will

be

outlined

in

this

sub

section. Revenue,expenditures,

fundingandfinancingsourceswill

beexaminedhere.

Benchmarks &

TargetsForeachofthemodesorutilities,

aprocessofbenchmarkingwillbe

attempted,inordertoestablisha

performanceunitandlevelto

whichthesysteminquestion

oughttoaspire. Inorderto

assertthesetargets,precedents

orcasestudiesmaybeused.

AdaptabilityEachutilityormodewillhaveits

ownparticularcharacteristics,

whichwillaffecthoweasilyitcan

be

adapted

to

change

as

Detroitssituationchanges. This

sectionwillthereforeassessthe

adaptabilityofthesystemsin

questiontoDetroitsevolving

situation.

ChallengesHavingexaminedthe

aforementionedareasinsome

detail,thepenultimate

methodological

tool

deployed

on

eachofthecitysystemswillbe

anexaminationofthevarious

challengesaffectingthesystems

inquestion,andanevaluationof

theseverityofeach.

Assessment against

Potential MeasuresOverthecourseofthisPolicy

Auditanumberofpotential

measures begintoemergewhich

couldbedeployedtobringthe

citysystemsintolinewiththe

changingdemographic,economic

andspatialsituationinthecity.

Thesuitabilityofeachofthese

potentialmeasureswillbe

assessedagainstthespecific

situationandcharacteristicsof

eachmodeorutility,inthissub

section.

NOTE: Whereacertainareaofanalysislistedaboveisnotrelevant,orwheredatawasunavailable,anexclusionwillbemade(see3.3).

3.1


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3.2 Data Collection Approach

A COMMON DATA

PLATFORM

Thisprojectaimstocollate,displayand

analyseinformationfromthemyriadof

differentexercizes whichhavebeen

undertakentounderstandDetroit.

Thisinformationwillbeexaminedatarangeofscales,andattempttoofferup

adataplatformfromwhichevidence

baseddecisionscanbemade.

Datacatalogue FortheDetroitWorks

Project,HappoldConsultingassembled

asinglemultipagePDFdatacatalogue

containingillustrationsanddescriptions

ofthedatasetsobtainedbytheproject

team,andmadethisavailabletoallas

amenuofavailableinformation.

Spatialdatabase Datawillberepresentedspatially,creatingashared

GISbasedspatialdatabaseofDetroit

informationtobeusedinthe

developmentofanddebateon,

strategieslaterintheproject,byall

stakeholders.

DETROIT AS A

REGIONAL ENTITY

Inthedatacollectionprocessforthis

PolicyAudit,itwasimportantnotto

restrictthecollectionofdatatothe

DetroitCityLimits. Assuch,wherecity

systemsgobeyondthecitylimits,they

aretobeunderstoodandanalyzedas

regionalsystemsaccordingly. The

boundaryofouranalysisforthecity

systemsexaminedherewiththerefore

corresponds

with

the

extents

of

the

systemsthemselves,notthecity.

CITY SYSTEMS AS

ECONOMIC ENTITIES

Itisimportantthatdataiscollectedand

analysedforthevariouscityutilities

andtransportmodeswhichhelpsthe

teamunderstandthesesystemsasnot

onlyphysicalentities,butasboth

economic andfinancialentities,with

costs,budgets,expenditures,funding

sources,andtargets.

3.2

POLICY AUDIT TOPIC CITY SYSTEMS INFRASTRUCTURE TRANSPORTATION & SUSTAINABILITY


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3.2 Data Collection Methods

MAP SOURCING

ESRI(GIS)

MicrosoftV.E

Go

ogleMaps

SEMCOG

P&

DD

U

ofM

StateofMI

MCGI

MDOT

DD

OT

DW

SD

DC

DC

Ea

stJefferson

Da

taDrivenDetroit

LIS

C

SM

ART

Na

tlWildlifeFed.

Ch

arterRev.Com.

McKinsey

De

troitIntermodal

MDOTBorderCom.

De

pt.PublicWorks

Pu

bLightingDept

GIS Data&

Mapping

Reports

Interviews/

Meetings

WoodwardLRT

DTC

(PeopleMover)

C.Y.

A

irport

Det.Muni.Parking

DEGC

MichiganEGC

Dept.Env.Affairs

CCGr

eenTaskForce

Wayn

eStateU

RiverfrontCons.

ConnectMichigan

PortofDetroit

ResourceRecovery

GIS Data&

Mapping

Reports

Interviews/

Meetings

DatawasobtainedforthisPolicyAuditin3majorways;through

dataobtainedfromDetroitstakeholders,throughthereadingan

interpretationofreportspreparedbythosestudyingDetroitatp

andinthepast,aswellasgroupmeetingsandtargetedinterview

relevantDetroitagencies.

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Itisimportanttonotethatdespiteawidereachingresearcheffort,thereareseveralkey

piecesofinformation,whichatthedateofprinting,remainoutofreachtothetechnical

team. Reasonsvaryfromthedatasimplynotexisting,itsbeingwithheldfromthe

Technicalteamforreasonsofcommercialsensitivity,oritsimplynothavingbeenprovided

totheteamyet.

MajoritemswhichaffectthisPolicyAuditarelistedhere:

Conditioninformationforutilitiesnetworks

Detailsregardingageanddesignlifeofvarioussectionsofutilitynetworks

Telecomsnetworkmapping

Economic

Performance

/ridership

of

bus

lines

mapped

spatially

to

specific

linesWaterandpowernetworkcapacities/utilizationbyneighborhood district

3.3 Exclusions

LIMITATIONS IN DATA AVAILABILITY

3.3

POLICY AUDIT TOPIC: CITY SYSTEMS INFRASTRUCTURE TRANSPORTATION & SUSTAINABILITY


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1. Balanceredevelopmentandenvironmentalpriorities.

Thiswillaimtoprovideasafe,healthyandsustainableenvironment

protectedforthebenefitofpresentandfuturegenerationsthrough

securingecologicallysustainabledevelopmentanduseofnatural

resources,whilstpromotingjustifiablesocialandeconomicdevelopment

2.Minimizethecityscarbonfootprintandreducethecitysrelianceon

nonrenewableresources.

This

will

aim

to

preempt

the

impending

legislative

requirements

to

reducecarbonemissions.Areducedrelianceonnonrenewable

resourceswillprovideflexibilitywithintheenergymarketofthecity.

3.Maximizeresourceefficiencyandensureefficientutilizationof

infrastructure.

Theaimistoreducetheresourcesrequiredforcityprocesseswhichin

turnwillreduceassociatedcostsandwastestreams.Iflessresourcesare

required,less

4.Increasediversityofenergysupplymixtoreducevulnerabilityand

increasethesustainabilityandresilienceofsupply.

AdiversifiedenergymixwillenableDetroittobelessvulnerableto

fluctuationsintheenergymarket(e.g.risesinoilprices).Integrationof

renewableenergytechnologiescanservetoprovideanelementof

resilience,flexibilityandcompetitivenesswithintheenergysector.

5.Improveconnectivityandaccessibilityacrossthecitythroughthe

useofanefficientandaffordablepublictransitsystem.

Theaimistocreateapublictransitandtransportationnetworkwhich

provideshighlevelsofconnectivityandaccessibilityforresidentsand

visitorstotheCityofDetroit.

6.Reducepovertyandsocialexclusionwithintheutilityand

transportsectors.

Theaimistoenableresidentsandvisitorstohaveaccesstoutilityand

transportationserviceswhichareaffordableandreliable.

THE FOLLOWING SUSTAINABILITY PRINCIPLES WERE USED AS AFRAMEWORK OF OBJECTIVES FOR THE CITY SYSTEMS AUDIT

3.4 Metrics

3.4

POLICY AUDIT TOPIC: CITY SYSTEMS INFRASTRUCTURE, TRANSPORTATION & SUSTAINABILITY


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3.4 Metrics

UNDERSTANDINGTHECURRE

SITUATION,THROUGHEIGHT

CHALLENGES,COMMONACRO

SYSTEMSAssection4ofthisPolicyAuditattests,thebuilding

informationbaselineforeachcitysystemresultsin

understandingofthevariouschallengestheyface.

wereabletoreducetherangeofchallengestoeigh

appliedacrosstheboard. Foreachutilityormode,

impactsandconsequenceofeachchallengeisasse

andtheseverityoftheseconsequencesovertime

evaluated,andscoredusingatrafficlightassessmeisnotanassessmentoftheperformanceofthe

implementingagencyoroverallsystemperformanc

thechallengesfacingthevarioussystems.

Ascertainchallengesturnouttobemorerelevantt

certainsystems,theyhelpidentifythemostaptme

to

address

them

(see

next

page).

CATEGORIZING CHALLENGES

Good

ProblemsEmerging

Inadequate

Poor

Notapplicable

A Utilization

CurrentLevelofService

ResourceUsage

NetworkAdaptability

EfficacyofGovernanceStructure

FiscalPosition

NewInvestment

Disinvestment

B

C

D

E

F

G

H

X Impact? Consequence?

SeverityTestingIssue

Potential

Measure

CHALLENGES

3.4



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,


3.4 Metrics

BUILDINGACASEFORCHANG

BASEDONNINEPOTENTIAL

MEASURESFOREACHSYSTEM

Afterbuildingabaselineforeachsystem,identifyin

keychallengesandopportunities,ninepotentialm

wereidentifiedagainstwhichtobuildacaseforch

Anassessmentwasundertakeforeachmeasurefo

effectiveness and easeofimplementationforeac

Anoveralltrafficlightassessment Indicatesthereefficacyofeach.Thosewiththebestpotentialwill

forwardinphase2Aoftheprojectfordetailedsce

testing.

TESTING POTENTIAL MEASURES

Strong

Potential

Challenges

Difficult

Notapplicable

1 Changelevelofserviceprovided

Raisedirectrevenuesfromprovisionofinfrastructureservices

Increaseefficiencyofserviceprovision

Developsynergiesbetweennetworks

Optimize deliverymodels

Increaseefficiency ofresourceuse

Bringnewusers Economicandpopulationgrowth

Realignnetworkssize/capacity

Useexcesscapacitytoserveexternalmarkets

2

3

4

5

6

7

8

9

X Effectiveness? Implementation?

ScoreTestingMeasure

Modelling

POTENTIAL MEASURES

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3.5 Extents

1. United States and Canada 2. State of Michigan

3. 7-County Region 4. City of Detroit

DETROITSYSTEMSAREBIGGERTHAN

DETROIT

WhilsttheDetroitWorksprojectlimitstheterrainwhichitcan

influence

to

the

city

limits

of

Detroit

proper,

it

is

important

to

ntheeconomic,social,naturalandconstructedcitysystemsoft

Detroitfunctionatseveralscales. Assuch,theextentspersecitysystemsresearchinthepolicyauditaredeterminedbythe

functionalscaleofeachsystemcoveredherewith.

SOURCE:ESRI/SOM

3.5

SYSTEMS THINKING AT VARIOUS SCALES



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Theme AECOM

Ecology&

Landscape

HAA

Neighborhood &

Housing

SOM

Regional&City

UrbanForm

ICIC

Economy

HRA

PublicLand

Development

Infrastructure

Systems

Openspaceasdrainageprovider

Floodmanagementroleofopenspace

Openspacesasutilitycorridors

Linksbetweenneighborhood

typologiesand

infrastructure

investment

Linksbetweeninfrastructure

investment andquality,

andfuture

developmentzones

Linking resourcestrengths(e.g.water)

withindustrial

opportunities(e.g.Blue

Economy)

Linkinginvestmentinpubliclandorsale

thereofwithevolving

infrastructurenetwork

Transportation

Systems

Greenwaysandotheropenspacesas

movementcorridors

Movementpatternswithinandbetween

neighborhoods

Linksbetweentransportinfrastructure

andurbanstructure,

futuredevelopment

zones

Linking newemploymentcenters

withevolvingtransport

infrastructure

Linkinginvestmentinpubliclandorsale

thereofwith

developmentsinthe

transportnetwork

Fiscal Sustainability Links between

neighborhoodstructureandviability

ofutilities

Links betweennew

industrialstrategies

andpublicfacilitation/

supportthereof

Efficiencies with

regardstopublicasset

strategy

3.6 Future Integration

INTEGRATION & COBENEFITS BETWEEN POLICY AUDITS

Community

Engagemen

onthegroun Stakeholder fe

onthegroun Stakeholder fe

onthegroun

Stakeholder fe

3.43.6


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4 SYSTEMS REVIEW


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4.1 INFRASTRUCTURE POLICY CONTEXT


PHASE ONE: RESEARCH AND PRIORITIES


35/276



SOURCEUnionofConcernedScientists IllinoisRenewablePortfolioStandardSummary

4.1

4.1 Federal Governments Vision for the National Transportation Infrastructure

INVESTMENT PLANS IN INFRASTRUCTURAL DEVELOPMENT, 2010THEPRESIDENTSOFFICEHASLAID

OUTABOLDVISIONFOR

RENEWINGANDEXPANDINGTHE

TRANSPORTATION

INFRASTRUCTURE

SomeofthetangibleaccomplishmentsofthePresidents

planoverthenextsixyearsinclude:

ROADS:Rebuild150,000milesofroads renewingour

commitmenttothebackboneofourtransportation

system;

RAILWAYS:Constructandmaintain4,000milesofrail

enoughtogocoasttocoast;

RUNWAYS:Rehabilitateorreconstruct150milesof

runway whileputtinginplaceaNEXTGENsystemthat

willreducetraveltime.

UPFRONTINFRASTRUCUTURE

INVESTMENT

Anupfront investment:ThePresidentwillworkwith

Congress

to

enact

a

new

up

front

investment

in

nations

infrastructure Thisinitial investmentwouldfund

improvementsinthenationssurfacetransportation,as

wellastheairportsandairtrafficcontrolsystem.

Avisionforthefuture:ThePresidentproposestopair

thiswithalongtermframeworktoreformandexpand

thenationsinvestmentintransportationinfrastructure

througha$50billionupfrontinvestment

THELONGTERMFRAMEWOR

INCLUDESFOLLOWING

MEANINGFULREFORMS

TheestablishmentofanInfrastructureBank to

federaldollarsandfocusoninvestmentsofnatio

regionalsignificancethatoftenfallthroughthec

thecurrentsiloed transportationprograms;

Theintegrationofhighspeedrail onanequalf

intothesurfacetransportationprogramtoensu

sustainedandeffectivecommitmenttoanation

speedrailsystemoverthenextgeneration;

Streamlining,modernizing,andprioritizing sur

transportationinvestments,consolidatingmore

differentprogramsandfocusingonusingperfor

measurementandracetothetopstylecomp

pressurestodriveinvestmenttowardbetterpol

outcomes;

Expandinginvestmentsinareaslikesafety,

environmentalsustainability,economiccompeti

andliveability.


PHASE ONE: RESEARCH AND PRIORITIES


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4.1 Safe Drinking Water Act

FEDERAL LAWTHESAFEDRINKINGWATERAC

(SDWA)ISTHEPRINCIPALFEDE

LAWINTHEUNITEDSTATESTH

ENSURESSAFEDRINKINGWAT

FORTHEPUBLIC

SDWA authorizestheUnitedStatesEnviromental

ProtectionAgency(USEPA)tosetnational;healthba

standardsfordrinkingwaterproductustoprotectag

bothnaturallyocurringandmanmadedecontamine

maybefoundindrinkingwater.USEPAstatesandw

system

then

work

together

to

make

sure

that

these

standardsaremet.

SDWAwasoriginallypassedbyCongressin1974to

publichealthbyregulatingthenation'spublicdrink

watersupply.Thelawwasamendedin1986and19

requiresmanyactionstoprotectdrinkingwaterand

sources:rivers,lakes,reservoirs,springs,andgroun

wells.

Source:UnitedStatesEnvironmentalProtectionAgency

http://www.epa.gov/lawsregs/laws/cwa.html

4.1




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S O S C O S

4.1 Clean Water Act (CWA)

FEDERAL LAWTHEACTESTABLISHEDTHEBAS

STRUCTUREFORREGULATING

DISCHARGESOFPOLLUTANTS

INTOTHEWATERSOFTHEU.S.

TheFederalWaterPollutionControlAct popularly

astheCleanWaterAct(CWA) wasenacted in1972

amendedin1977,thislawbecamecommonlyknow

CleanWaterAct.TheCWAgavetheEnvironmental

ProtectionAgency(EPA)theauthoritytoimplement

pollutioncontrolprogramssuchassettingwastewat

standardsforindustryandsetwaterqualitystandar

all

contaminants

in

surface

waters.

TheCWArequirestheEPAtoestablisheffluentlimit

fortheamountsofspecificpollutantsthatmaybe

dischargedbymunicipalsewageplantsandindustri

facilities.

Thetwostepapproachtosettingthestandardsincl

(1)establishinganationwide,baseleveltreatmentt

an

assessment

of

what

is

technologically

and

econoachievableforaparticularindustryand

(2)requiringmorestringentlevelsoftreatmentfor

plantsifnecessarytoachievewaterqualityobjectiv

theparticularbodyofwaterintowhichthatplant

discharges.

Source:UnitedStatesEnvironmentalProtectionAgency

http://water.epa.gov/lawsregs/guidance/sdwa/upload/2009_08_28_sdwa_fs_30ann_sdwa_web.pdf

4.1




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EPAHASISSUEDITSCLEANWATE

ANDDRINKINGWATER

INFRASTRUCTURESUSTAINABILIT

POLICY

AS

PART

OF

ITS

EFFORTS

TOPROMOTESUSTAINABLE

INFRASTRUCTUREINWATER

SECTOR

Objectiveofthepolicyisto:

Employ

processes

that

focus

on

projects

that

are

coseffectivethroughouttheirlifecycle;resourceefficient

and,consistentwithcommunitysustainabilitygoals;

Introduceamechanism(SmartGrowth)tofacilitatet

allocationoffederalfunds($3.3b)todrivethe

sustainableinfrastructureinitiativeacrossstates;

Tobuildontheinfrastructuralgapfindingsofthe200

GapanalysisconductedbytheEPAandcomeupwith

relevantsetofactionsforthefuture;

Encouragebettermanagementpractices,efficientwa

use,fullcostpricingofwaterandawatershedapproa

toprotectiontooperatemoresustainably.

4.1 Water Infrastructure Sustainability Policy, EPA, 2010

SMART GROWTH- GUIDING POLICY FOR FEDERAL FUND ALLOCATION

X

1

CLEAR

E V I D E N C E B A S E D

S T R A T E G I C

D I R E C T I O N

SOURCE: http://www.dleg.state.mi.us/mpsc/comm/telecom/pa179.pdf

4.1

Imageofroad/highway

infrastructure




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4.1 Public Act 295

MICHIGAN CLEAN, RENEWABLE AND EFFICIENT ENERGY ACT, 1998THEACTESTABLISHEDA

RENEWABLEENERGYSTANDA

THATREQUIRESMICHIGAN

ELECTRIC

PROVIDERS

TO

ACHARETAILSUPPLYPORTFOLIOT

INCLUDESATLEAST10%

RENEWABLEENERGYBY2015

ThePublicAct295requireselectricutilities inthe

Michigantodevelopandimplementplansto:

Obtainatleast10%oftheelectricityfurnishedt

customersfromrenewableenergyresourcesby

Reduceconsumptionofelectricitybyinstituting

optimizationmeasuressuchasprovidingincent

customerstousemoreenergyefficientequipme

devices

and

instituting

other

energy

conservatiomeasures.

Incentivizetheprogramforimpactmaximisation

X

1

CLEAR


S T R A T E G I C

D I R E C T I O N

SOURCE: MichiganPublicserviceCommission(http://www.michigan.gov/mpsc/0,1607,7 15916393,00.html, http://www.michigan.gov/mpsc/0,1607,7 15916393_55027,00.html

4.1




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4.1 Act 51

MICHIGAN TRANSPORT FUND (MTF) DISTRIBUTIONACT 51CHANNELSRESTRICTE

TRANSPORTREVENUES INTO

SPECIALREVENUEFUNDSAN

SETS

OUT

A

FUND

ALLOCATIOMECHANISMAct51governsthestateapportionsformostMich

transportationprograms. TheActcreatestheMich

TransportationFundasthemaincollectionanddis

fundforthestategeneratedtransportationrevenu

InadditiontheACTalso:

DirectshowtheStateTrunkline FundandComprehensiveTransportationFundsarespent

determines thepriorityorderforfundingthose

programs;

Providesinternalformulaswhichdirect howlocagenciescanspendtheirdistributionofMTF;

AllocatesfederalhighwayfundsbetweenMichig

DepartmentofTransportationandlocalroadagand;

Createsanumberofcomplianceandreportingrequirements.

X

1

CLEAR


S T R A T E G I C

D I R E C T I O N

SOURCEFebruary2007,HouseFiscalAgency,Aguideto1951PublicAct51andMichiganTransportationFunding

4.1




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4.1 Transportation 141

THE CUSTOMER CHOICE AND ELECTRICITY RELIABILITY ACT, 2000THECUSTOMERCHOICEAND

ELECTRICITYRELIABILITYACT

2000AUTHORIZEDTHECREAT

OF

A

LOW

INCOME

AND

ENEREFFICIENCYFUND(LIEEF)

TheCustomerChoiceandElectricityReliabilityAct

Act141;scrutinized142)establishedtheLowInco

EnergyEfficiencyFund.Thefundwasadministered

MichiganPublicServiceCommissionviagrantstoq

organizations.

TheCommissiondeterminedthatapproximately7

grantmoniesawardedwouldbeallocatedtoprovi

incomeenergyassistanceandlowincomeenergy

programsand25%wouldbeallocatedtothedeve

ofenergyefficiencyprogramstobenefitallcustom

classes.TheCommissionalsostateditintendedto

aportionoftheproceedstocreateanendowment

finance

programs

that

assist

low

income

customersupportenergyefficiencyprojectsbeyondthesixy

existenceoftheFund.

X

1

CLEAR


S T R A T E G I C

D I R E C T I O N

SOURCE:MichiganPublicServiceCommission,http://www.michigan.gov/mpsc/0,1607,7 1595249379463,00.html

4.1




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4.1 Public Act 179

MICHIGAN TELECOMMUNICATION ACT, 1991THEMICHIGAN

TELECOMUNICATIONSACTOF

1991WASPROPOSEDTO

REGULATEANDINSURETHE

AVAILABILITYOFCERTAIN

TELECOMMUNICATIONSERVIC

TOPRESCRIBEPENALTIES;TO

REPEALCERTAINACTSANDPA

OFACTS;ANDTOREPEALTHIS

ACTONASPECIFICDATE

Inaddition,TheMichiganPublicServiceCommissio

(MPSC)statutoryresponsibilitiesrelatedto

telecommunicationsservicesrequirethattechnical

beavailabletocompaniesprovidingtheservicesan

customersusingtheservices.Inprovidingthatsupp

MPSCmustrecognizethepolicytopermitandencomarketcompetitiontogovernpricesandservicesin

marketswherecompetitionexists

X

Source: MichiganTelecommunicationsAct (http://www.dleg.state.mi.us/mpsc/comm/telecom/pa179.pdf )

4.1


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UTILITIES




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Utilities - Introduction

AT THE CORE OF A STRONG REGIONAL NETWORKSERVICINGTHECITYWITHCRITICALUTILITY

SERVICES

Thefollowingsectionssummarisethekeyagenciesandtheirresponsibilitiesfo

utilities

related

activities

within

the

Detroit

Metropolitan

Region,

as

well

as

developingabaselineofDetroitsutilitysystemswithinthecitylimitsaswella

widerconnectivitywiththeregion.

Thesefollowingsectionsaddress:

1. Water

2. Energy

3. Waste4. Telecomms andICT


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4.2 WATER




46/276


4.2 Water

OVERVIEWREGIONAL WATER RESOURCES

WaterisoneoftheDetroitRegionsgreatassets.Almostallwa

theRegionisdrawnfromtheGreatLakes. Thisisthelargestfr

waterbodyonearth,holdingnearly20percentoftheworlds

percentofNorthAmericasfreshsurfacewater.

WaterQualityremainshighasidefromsomelocalpollution(se

andAECOMreports.)Thecurrentrateofconsumptionissusta

populationandusehasdeclinedsignificantly.However,water

efficiencyandconservationareperformingpoorlyandfuture

consumptiongrowthmaybecomeunsustainable

Thefollowingsectionssummarisethekeyagenciesandtheir

responsibilitiesforwaterrelatedactivitieswithintheDetroit

MetropolitanRegion,withspecificfocusondevelopingabase

DetroitsWaterResourceManagementwithinthecityaswell

waterresourceissues.

CurrentStressestothesystemare:

Aginginfrastructure.

Reducedconsumptionresultingfrom:

Decliningpopulationgrowth

Declining Job/Economicgrowth

Increasedsustainability/wateruseefficiencyin

Underuseofnetworkcapacityincreasesmaintenancerequirements.

Thisreportcoversthreewatersystems:

1. PotableSupplyNetwork

2. SewageNetwork

3. StormWaterManagement.Map showing Detroits proximity to the Great Lakes

4.2




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4.2 Water

GOVERNANCE FRAMEWORKGREATLAKESCOMPACTREGULATES

USAGE

WaterusageisgovernedbytheGreatLakesCompactsignedwith8USStatesin2008. TheCanadianprovincesofOntari

Quebecareassociatemembersofthecompact.

TheCompactgovernsLakesErie,Huron,Michigan,OntarioSuperior,andtheSt.LawrenceRiver,togetherwithanyand

naturalormanmadewaterinterconnectionsbetweenoram

them.

Italsoappliestoallrivers,ponds,lakes,streams,andotherwatercourseswhich,intheirnaturalstateorintheirprevail

conditions,

are

tributary

to

Lakes

Erie,

Huron,

Michigan,

OntClair,andSuperiororanyofthemorwhichcomprisepartof

watersheddrainingintoanyofsaidlakes.

WaterdivertedfromtheGreatLakesBasinregionmustbertotheGreatLakesinthequantityandqualitylevelthatitw

removedinordertopreservethestatusofthewaterdepen

naturalresourcesresidingwithintheGreatLakes.

GreatLakesCompact forbidstheexportofwateroutsideth

covered

by

the

compact

to

states

further

to

the

south

. TheCompactisintendedtoprovidealongtermleverforrev

movement ofpopulationandeconomicactivitytoSouthW

expectationthattheywillhavetoreturntowherethewate

thanpipingittothem.

4.2




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4.2 Water

GOVERNANCE FRAMEWORKRESPONSIBLEBODIES

StrategicOversight:

Federal:EnvironmentalProtectionAgency(EPA):

Developsenvironmentalpolicy,legislationandcontrol

Ensures

enforcement

of

federal

law.MichiganState:

DepartmentofNaturalResources&Environment(DNR

statewidewaterpolicytakingintoaccountfederallaws

standards

DepartmentofEnvironmentalQuality(DEQ):regulates

operationsincludingpermitting&compliancemonitor

Planning:

SouthEasternMichiganCouncilofGovernments(SEMCOG):

50yearstrategicwaterplanfortheDetroitRegion

DesignatedWaterQualitymanagementagency

Operations/Delivery:

CityofDetroit:DetroitWaterandSewageDepartment(DWSD

SetupasEnterpriseAgencydeliveringallwaterservice

cityonanotforprofitbasis

Soleproviderofwaterservices(ownsandcontrolstrea

plants&supplynetwork)withinDetroitCityArea.

MajorityproviderwithinSEMCOGregion

Governedby7waterboardcommissioners

appointedbytheCityMayorwhoare

representatives

of

Detroit

and

surrounding

suburbanareas

Responsibleforrevenue

collectionfromcustomers.

Sources: http://www.epa.gov/ow/ ; http://www.michigan.gov/som/0,1607,7-192-45414---,00.html ; http://www.semcog.org/Water.aspx

4.2

Governance Framework for Water and Waste Water



4 2W


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4.2 Water

RESOURCES AND NETWORKPOTABLESUPPLYNETWORKCoverage/Extents:

Thesystemcoversa1079sqmileareaincludingDetroitCity

suburbancommunities.

Thesystemserves:

AllDetroitPopulation(750,000)

3millioninneighboringcommunities

Togetherthisisequivalentto43%ofMichiganspopul

Network:

ThewatersystemownedbyDWSDcovers:

3000milesofdirectlyownedpiping,including27,244f

hydrantsacrossthecity.

9,000milesofconnectedmainsownedbywholesalec

(suburbancommunitiesbuywateronawholesalebasi

Detroitneighborhoodsaresuppliedbyloopsystemsinorde

maintainpressureandwaterquality

Thewatersystemincludes21boosterpumpstationsa

waterstoragereservoirslocatedthroughoutthesystem

auxiliaryfacilitiesmanagedbyDWSD.

Source:DWSD

4.2

Map showing Potable Water Network in Detroit



4 2W


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4.2 Water

RESOURCES AND NETWORKPOTABLESUPPLYNETWORK(cont.)Supply:

DWSD systemhasratedcapacityof1.7billiongallonsperd

currentlyeffectivecapacityof1.4billiongallons.

DWSDtreatswaterfromLakeHuronandtheDetroitRiveramanagesandoperates5watertreatmentpumps/plants,av

662milliongallonsofdrinkingwatereachday.

Thisiswellwithinnetworkcapacityandisalsolessthan

Michigan/DetroitentitlementsundertheGreatLakesComp

Approx.30%summertowintervarianceindemand.

Consumptionfallingby5%ayear.

Networkisoperatingonaverageat39%ofratedcapacitya

ofeffectivecapacity.Evenpeaksarewellwithincapacity

hotsummershavenotproducedanybilliongallondays.

Source:DWSD

4.2

Map showing Potable Water Network in Detroit



4 2W t


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4.2 Water

RESOURCES AND NETWORKSEWAGENETWORKCoverage/Extents:

TheDWSDsewagesystemcovers946sqmilesservingcityo

and76suburbanareas.

Thesystemprovidessewageservicesto:

All

Detroit

Population

(750,000). 2millioninneighboringsuburbancommunities.

Togetherthisisequivalentto35%ofMichiganpopulat

Network:

TheDWSDmanageandoperateover14,200mileofmunicip

sewers.

Thesewerisacombinedsystemcarryinguntreatedsewage

stormwaterwithinitspipes.

Thesecombinedsewersconveyalldryweatherflow,andal

portionofthewetweatherflowtothewastewatertreatme

at9300W.JeffersoninaccordancewithNationalPollutantD

EliminationSystem(NPDES)permitMI0022802.

Treatment:

DWSDmanageandoperate11seweragepumpstationand

combinedsewerageanddisinfectantstations.

TheDetroitwastewatertreatmentplantisoneofthelargesworld(measuredbypeakflowcapacity).

TreatedwastewaterisdischargedintotheDetroitRiver.

Sewagesludgeisincinerated.

RiverRougePlantisinnoncompliance.

Moresewagesludgethanallowedby

Federal/StateRegulationisstoredonsite.

Operations/Delivery: Networkisoperatingbelowcapacity.

Map showing Waste Water service area around Detroit

Source:DWSD

4.2



4 2W t


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4.2 Water

RESOURCES AND NETWORKSTORMWATERMANAGEMENT

Coverage/Extents:

Mostofthestormwaterrunoffisconveyedthroughthecom

sewersystemwhichcarriessanitarywastealongwithstorm

drainagewithinitspipes towastetreatmentplants.

Detroit alsohasafewmunicipallyownedseparatestormse

limiteddrainagearea,primarilyparklandwithriverfrontage

Network:

WithinDetroitCity,allmajornaturaldrainagechannelshave

blockedoffandallstormwaterisdivertedintothesewagen

thispreventspollutionoftheGreatLakes/DetroitRiverbyr

contaminatedareasofthecity.

Duringsevereweatherevents,theoverflowofthecombinepermittedtodischargedirectlyintotheRougeRiver.

Regulation:

DetroitsstormwaterdischargeisregulatedbyaGeneralSt

DischargePermit (GSWDP)issuedbytheStateofMichigan.

ThepermitrequiresthataStormWaterManagementProgr

(SWMPP)bedevelopedtooreducedischargeofpollutantsa

protectqualityofwater.

Influences:

Anumberofdepartmentshaveinfluenceoverthemanagem

stormwater,including:RecreationDepartment;Building&S

EngineeringDepartment;Planning&DevelopmentDepartm

DepartmentofPublicWorks;

DepartmentofEnvironmentalAffairs;

DetroitEconomicGrowthCorporation;

GreaterDetroitResourceRecoveryAuthority;

andtheGeneralServicesDepartment

CorporationCouncil.Source: http://www.dwsd.org/index.html ; http://www.detroitmi.gov/DepartmentsandAgencies/DepartmentofEnvironmentalAffairs/StormWaterManagement.aspx

4.2

Map showing Waste Water service area around Detroit



4 2Water


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4.2 Water

UTILIZATION

Declining water sales

Average daily water use, Detroit Water and Sewerage Department(DWSD)

Source: The Foster Group

Source: The Foster Group4.2

REDUCINGCONSUMPTION

DecliningIndustryandPopulation:

ManufacturingIndustryisindecline.

Populationnumbersarereducingbyapproximately 10,000

Operations/Delivery:

WaterNetworkcurrentlyoperatingbelowcapacitywithar

utilizationrate.

Networksareoversized&havemaintenanceissuesassociat

underuse.

Onaverage,thetotalquantityofwaterattributedtoUnacco

forWateris42,570MGeachyear.

ReducingConsumption,IncreasingPrices:

Consumptionofwateris fallingyearonyear.

Fewerunitsarebeingusedleadingtolessrevenueandthe

increaseratestocovertherevenueshortfalls.

Thousandsofresidenceshavehadtheirwaterconnectionsc

DWSD,forcingpeopletoadoptinformalmethodstogainac

drinkingwater.

-Need to tighten up referencing of stats



4 2Water


54/276


4.2 Water

MAJOR PLANNED/ON-GOING PROJECTSPROPOSALS

PlannedProjects:

SEMCOG(SoutheastMichiganCouncilofGovernments)ou

50yearwaterandsewerservicestrategyduetoexpected

population

growth

and

expansion

of

service

need.

2.8billionwasplannedtobeinvestedovernext5yearsfo

andsewerprojects.AsaresultofCWMP,theCapitalImpro

Programhasbeenestablishedtomaintainwatersystemsa

replacepoorinfrastructuretoreducemainlinebreaksand

Investmentwillalsobemadeintheformofenvironmenta

protectionsschemes i.e.replacingoldagingwatermains

seweragesystemsandenhancementofsevereweatherpr

devices.

SpringwellWatertreatmentPlantisageingandneedscom

replacement/majorretrofit.

The

city

is

implementing

a

long

term

control

program

to

enadequatetreatmentofsewageinlinewithfederaland

environmentalrequirements.

Source: http://www.dwsd.org/index.html ; http://www.semcog.org/Water.aspx ; http://www.detroitmi.gov/Departments/tabid/61/Default.aspx4.2

Map showing Sewer Network Expansion in Detroit



4 2Water


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4.2 Water

PROPOSALS

PlanningFramework

In2004,DWSDdevelopedaComprehensiveWa

MasterPlan(CWMP)

The

vision

for

the

plan

was

to

create

a

CWMP

thguideanddirecttheexpansionofthewatersyst

meetthegrowingneedsofthecommunitieswit

serviceareaoverthenext50years.

Keyobjectivesoftheplanweretoidentifystrate

capitalimprovementsandoperation/maintenan

procedureswhichwouldhelptoreducetheamo

UnaccountedforWater.

Investment

is

directed

by

this

50

year

Strategic

PwhichwaspreparedincooperationwithSEMCO

Recent economicweaknesshasrequiredtherev

thisplan

MAJOR PLANNED/ON-GOING PROJECTS

2010 2020

Source: http://www.dwsd.org/index.html ; http://www.semcog.org/Water.aspx ; http://www.detroitmi.gov/Departments/tabid/61/Default.aspx4.2



4 2Water


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4.2 Water

MAJOR PLANNED/ON-GOING PROJECTS

Source: 1. DWSD; 20034.2

2030 2040 2050

Planning Framework (cont.)



4 2Water


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4.2 Water

MAJOR PLANNED/ON-GOING PROJECTSMITIGATION STRATEGIES ALREAD

IDENTIFIED AS PART OF CAPITAL

WORKS MANAGEMENT PLAN (

CWMP):

OperationandMaintenanceProcedures:

LeakDetectionProgram

CWMP,DWSDContractNo.CS1278,March2004,statestha

28percentofthetotalunaccountedforwater(UFW)isattr

leaksfoundthroughaleakdetectionprogram.

EliminationofthisUFWequatestoannualsavingsofapprox

$6.5

million. Thisnumberisconservative,asitdoesnotaccountforsubs

leakslastingformorethanayearorfortheadditionalcosts

treatingtheleaksthatdrainintothesewersystem.

Howevertheongoingleakdetectionandrepairprogramha

significantgainsinreducingUFW.DWSDalsohadaleakdet

programbeingperformedintheearly1990s.

Itshouldbenotedthattheperiodbetweentheseprograms

1997

highlighted

opposite

in

blue)

was

the

only

time

that

thactuallyincreased.

Basedonthisdataitcanbeshownthataleakdetecti

repairprogramshouldbeongoingandnotaonetime

ItiswasrecommendedthatDWSD

continuewithitsannualleak

detectionandrepairprogram.

Figure 1 was obtained from the DWSD annual Summary of Operating Statistics reports for 1991through 2000 and shown in CWMP, DWSD Contract No. CS-1278, March 2004.DWSD had a leak detection program from 1991-1993 and an ongoing program active since 1997to which recent reductions in % unaccounted-for water may be attributed. The total UFWattributed to leaks reduced from a high of nearly 20 percent in 1997 to 16 percent in 2000.

Source:http://www.dwsd.org/about/water/Task_C_UFW.pdf

4.2



4.2Water


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4.2 Water

MAJOR PLANNED/ON-GOING PROJECTSMITIGATIONSTRATEGIES(cont.)

CapitalImprovements:

Piperehabilitationandreplacementprogram

CWMP,DWSDContractNo.CS1278,March2004,statestha

majorityofmainbreakscanbeattributedtooldpipesthathexceededtheirusefullife.

Basedonthelast5years,DWSDhasreplacedanaverageof

ofpipeannually.

Approximately,1,950milesofpipeareolderthan75yearsa

shouldbereplaced.However,thiswilltakeapproximately 1

tocompleteatthecurrentreplacementrate.

Anewpiperehabilitationandreplacementprogramis

developedaspartoftheCWMP.

ThisreportwillproposeastrategyfortheDWSDtobe

manageitsreplacementprograminordertoaccelerat

rateofpipereplacement.

OTHERSTRATEGIESINCLUDE:

WaterTreatmentPlantMetering

MeteringofAccounts

MeterTesting

WaterAudit

UnidirectionalFlushing

Figure 2 is a summary of the DWSD UFW from 1998 2003 as presented in CWMP, DWSDContract No. CS-1278, March 2004. On average, the total quantity of water attributed to UFW is42,570 MG each year. The largest known quantity of UFW is attributed to leaks, then hydrantuse (mainly by other City departments).

SOURCE: 1. DWSD, http://www.dwsd.org/about/water/Task_C_UFW.pdf

4.2



4.2Water


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4.2 Water

FISCAL POSITIONPOTABLESERVICEANDSEWAGESERVICE

Funding:

AsanEnterpriseFundofDetroitCity,DWSDdrawsitsfundingfrom:

Revenue Customercharges:99.11%salesandchargesonbasisof:

Potable:

Metered

and

Combination Sewage:%ofpotableconsumed

Wholesale:Bulkmeter.Chargeistocommunityasawhole localcouncilrespo

forcollectionfromindividualconsumers

MiscellaneousincomeintheformofgrantsandrevenuefromboththeCityofDetroitG

FundandStateandFederalsubsidies

Around75%of watersalesaretowholesalecustomersinthesuburbs,therestissoldi

Over40%ofseweragerevenuesarefromsuburbancustomers

FiscalGovernance:

BudgetanticipatesthatasanEnterpriseFund,boththeWaterandSewageFundswillbeself

andprofitsarereinvestedortransferredtoCityGeneralFund

Budgetsetonanannualbasis.

Budgetsetonthebasisofforecastofhowmuchwaterwillbesoldandtreatedincomin

Budgetcoversbothoperationsandinvestment

TheWaterandSewageEnterpriseFundsaredesignedtobeselffinancing

ChargesmustbeapprovedbytheBoardofWaterCommissionerssupportedbyaTechnicalAd

Committee

SOURCE:1.McKinsey,DDOTDiagnostics,October2010.2.DWSDMeeting,October2010,3.CityofDetroitBudgets



4.2 Water


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FISCAL POSITION

Current position and identified issues Opportunities in the short to medium term Impact on Detroit Works

Capital investment challenges

Wastewater treatment plants have been non-compliant periodically for the past 40 years

Water bond payments increased by 50%over the period 2004/05 to 2009/10 butcapital investments decreased by 8% overthe same period

Sewerage bond payments increased by 42%over the period 2004/05 to 2009/10 but

capital investments decreased by 61% overthe same period

Staffing challengesSkilled personnel are being lost and DWSD

is finding it increasingly difficult to fillbudgeted positions

Rate setting and regulatory challengesDifficult to increase rates as constantly

contested in the courts for both Detroitersand suburbs

Improve the benefit of DWSD to the General

FundUse unilateral actions and change current

rulings to get the highest value to the cityfrom DWSD

Private operatorsExplore private partnership structures with

private investors, operators, General Fund

and DWSDThis could help extract more value from thewater and sewerage systems

Private operators may also be better placedto generate more revenues and further costsavings

For example, typical operational cost savingscould be in the range of 10 to 20% from suchan arrangement

The future state of the water and sewerage

systems, along with the viability of DWSD as anentity are key to the Detroit Works project. Thecurrent lack of investment in the water andsewerage infrastructure is of concern and are likelyto become more challenging as service standardsare raised. The current infrastructure will be unableto cope as the recent under-investment takes its toll.

SOURCE:1.McKinsey,DDOTDiagnostics,October2010.2.DWSDMeeting,October2010,3.CityofDetroitBudgets



4.2 Water


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FISCAL POSITION

ComparedtoothercitiesDetroithasbothlowmedianhouseholdincomeandaveragewaterb

Increaseinwaterrateswillhaveimplicationsoaffordability

Residential Customers,15,000 Gallons BillableWater Usage

Average bill =$17

Typical MonthlyWater Bill US $

0

5

10

15

20

25

30

0 10000 20000 30000 40000 50000 60000 70000

Median HouseholdIncome US $50 largest cities

Tulsa

Honolulu

Oakland city

Omaha

Colorado

Cleveland

Detroit

Las Vegas

Seattle

Virginia BeachAtlanta

Fresno

Long beach

Sacramento

TucsonMinneapolis

Oakland

Kansas

Oklahoma

Louisville

AlbuquerquePortland

The typical monthly water bill in Detroitranks 11 (1=lowest) and is below theaverage and median values whencompared with 50 largest US cities.Detroit ranks 3 (1=lowest) in terms ofmedian household income rankings of

50 largest US cities (by population) Average medianhouseholdincome=$47121

Source: Black & Veatch 2009/2010 Water/Wastewater Rate Survey of 50 largest cities (by population) in US,American Communities Survey, HC analysis



4.2 Water


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DETROITS WATER

Detroits household water consumption is slightly larger thUS average but significantly lower than other areas in theservice area .

DWSD Comprehensive Water Masterplan 2004 noted thaResidential Water Consumption per capita per day was aGallons/capita/day) In Detroit residential use was around Gallons; Milwaukees use was similar to the US average oGallons.

Circle of Blues Urban Water Pricing Survey 2010 noted Detroits Average Daily per Capita residential use had dec

63 Gallons; Milwaukee had also declined to 47 Gallons. Tfigures highlight a reduction in water use of around 25%.

Water rates are relatively low in the Great Lakes region dproximity to abundant water

However, in most major cities water use is declining whilecharged to residential customers are rising.

For this reason, many cities in the Region are actually looincrease water use because of spare infrastructure capacample supply.

Many cities are hoping to lure industry back to the region discounted industrial water rates.

Water Benchmarks Comparison Graph

BENCHMARKS/SUSTAINABILITY

Declining water sales: Average daily water use, Detroit Water and SewerageDepartment. Source: The Foster Group

4.2



4.2 Water


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ADAPTABILITY

Declining water sales

Average daily water use, Detroit Water and Sewerage Department

Source: The Foster Group

Source: DWSD4.2

SUMMARY

DecliningIndustryandPopulation:

ManufacturingIndustryisindeclineandpopulationnumbe

reducingbyapproximately 10,000peryear.

InefficientUseofWaterandWaterNetworks:

Onaverage,thetotalquantityofwaterattributedtoUnacco

forWateris42,570MGeachyear.

Networksareoversized&haveassociatedmaintenanceissu

IncreasingUnemployment:

Unemploymentisincreasingandmanypeoplehavenotbee

keepupwiththeirutilitybills,evenwithcityandstatefinan

assistance.

ReducingConsumption:

Consumptionfallingby5%ayearleadingtoincreasedrates

costoftheservicemustbespreadoverthesmallernumber

gallonsused.)

IncreasingPriceofWater:

ThedropinDetroitsnetwaterdemandhaspromptedthec

waterutilitytoincreasewaterratestocompensateforlost

Reducing

Ability

to

Pay: Manypoorresidentsnowsimplycantaffordthebasicservi

Thousandsofresidenceshavehadtheirwaterconnectionsc

DWSD,forcingpeopletoadoptinformalmethodstogainac

drinkingwater.


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4.2 Water


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KEY CHALLENGES: SUMMARY

Wa

ter

4.2 PoorEmerging

ProblemsInadequateGood

DWSDhassufficientscaletoaddresswatersupplyandseweragebriefeffectively.

Statusascitydepartmentpresentsissuesintermsofindependentpricesetting,budgeting,revenue

collection,accesstofunding/finance,employmentregulations

Continuoussupplyandatadequatepressuremaintainedtoalmostallcustomers.Highpotablewater

standardsmet.

SomeaspectsofsewagetreatmentarenoncompliantwithEPA/Stateregulation(sludgestorage,discharge)Wateris drawnfromsustainable sourcesataratewhichwillnotsignificantlydepletethisresource.

Energyusagebysystemtreat,pumpandmaintainpressurerequiresfurtherinvestigation

Maintenancecyclesarebeingdelayedandwillresultinnetworkdeterioration insomeareas

Networkiscurrentlyoperatingfarbelowcapacity(approx45%)

DWSDdoesnothaveaccesstosufficientfundingtomeetnewinvestment/reinvestmentrequirements.

RevenuesarefallingrapidlyandDWSDdoesnothaveaccesstosufficientinvestmentfunding.Debtservice

paymentsmakeuplargeitemofannualbudget. Revenuecollection fromDetroitcustomersisasignificant

issue.However,therren issomescopetoraiseprices.

Supplyandtransmissionnetworkisinflexibleanddoesnotyetincorporatesignificantredundancy

Localdistribution networkscanbemodifiedorshutdownbutonlyinlimitedcircumstancesandtolittle

financialadvantage



4.2 Water


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POTENTIAL MEASURES ASSESSMENT

4.2

Strong Potential Challenges Difficult Notapplicable

PotentialMeasures Effectiveness EaseofImplement

ation

Notes

Reducelevelofservice

provided

Nopossibilitytoreducewaterqualityormainsystempressure.

Lowerlevelofredundancycanbecontemplated sparingfutureinvestment.

Investigateroleofnaturaldrainagesystemstoreducepeakloadonstorm

drainage/wastewaternetwork

Raisedirectrevenuesfrom

provisionofinfrastructure

services

Scopeforfuturepricerises seeAmericanWaterworksAssociationprice

comparisons.

Improverevenuecollection requiresnewpowers(currentlyunderreview)

Increaseefficiencyofservice

provision

Nosignificantscopeforinternalrestructuring/staffcuts(fatcutoutfrom2005

onwards)

Develop

synergies

between

networks

Greater coordinationaroundneighborhood developmentwouldhelpwithmanaging

localdistributionnetworks.

Optimise deliverymodels Changeofgovernancestructuretoprovidegreaterindependencewouldhelpconsiderablybutwill takeconsiderableplanningandconsultation

Increaseefficiency ofresource

use

Nounderlyingwateravailabilitycrisis.Increasedefficiencywillfurtherreduce

networkthroughput(increasingsystemstressanddecreasingrevenue)

Bringnewusers Economic

andpopulationgrowth

Attractingnewuserswouldhelpsignificantlytodistributeburdenofhighfixedcosts.

NewindustrialuserswouldbeDWSDpreference.

Realignnetworkssize/capacity Notpossibleforsupplyandtransmission.Possiblefordistributioniflargeareaisdepopulated.

Decommissioningcosts onlymarginalsavingstoberealised

Use

excess

capacity

to

serve

externalmarkets

GreatLakesCompactforbidsoutofstateexport.Nosignificantcustomersavailable

withGLCarea andwouldneedextensiveinvestmenttoreachthem


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4.3

ENERGY



4.3 Energy

OVERVIEW


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OVERVIEW

REGIONALENERGYRESOURCES

Thefollowingsectionssummarisethekeyagenciesandtheir

responsibilitiesforenergycreationandsupplywithintheD

MetropolitanRegion,withspecificfocusondevelopingab

ofDetroitsEnergyResourceswithinthecityaswellaswid

resourcemanagementissues.

Thisreportcoverstwosourcesofenergy:

1. FossilFuels,includingcoal,oilandnaturalgas

2. RenewableEnergy,includingwind,solar,biomass

CurrentStressestothesystemare:

Depletingreservesoffossilfuel

Changingenergymarketsfavouringrenewablesources

Aginginfrastructure

Reducedconsumptionresultingfrom:

Decliningpopulationgrowth

Declining Job/Economicgrowth

Increasedsustainability/energyuseefficiencyi

4.3



4.3 Energy

GOVERNANCE FRAMEWORK


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GOVERNANCE FRAMEWORK

RESPONSIBLEBODIES

StrategicOversight&Planning:

Federal:DepartmentofEnergy(DOE):

Enablingnationalenergyandeconomicsecurity

Ensuringenvironmentalcontrolonenergydevelopment

CleanCities:providesdirectionforcoalitionsbyestablis

goalswithinastrategyframeworkthroughtheOfficeof

Efficiency.

MichiganState:DepartmentofLaborandEconomicGrowth(

andBureauofEnergySystems(BES):

SetoverallpolicydirectionthroughStateEnergyPlan

SupportCleanEnergyCoalitionatStatewidelevel

Operations/Delivery

Anumberofkeyprovidersoperatingverticallyinpowergene

anddistributionareinvolved:

NationalPlayers PrivateCorporations

DTEEnergy:NYSEListedOperatinginDetroitthrough:

DetroitEdisonEnergy(DTE)

MichiganConsolidatedGasCompany(MichCon)

ThermalVentures:OperatinginDetroitthroughDetroit

State

CMSEnergyCorporationtradingas

ConsumersEnergy

City

CityofDetroit:workingthrough

Public

Lighting

Department

(PLD)

anenterprisedepartment

4.3



4.3 Energy

RESOURCES AND NETWORKS


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FOSSILFUELS

Michiganstateisalargeuserofenergywithannualcostsex$30billionorthe8thhighestinthenation.

Michiganimports100%ofthecoalanduraniumused,96%fueloilandpetroleumproductsand75%ofthenaturalgas

DetroitEdison'sFuelMixUsedtoSupplyElectricity:

Coal:80.5%

Nuclear:16.5%

NaturalGas:1.4%

Oil:

0.2% Renewable:1.4%

ThechallengeistostrengthenMichigan'svalueaddedeconwhileminimizingrelianceonfossilfuels,particularlythosei

fromother,lessstablecountries.


Source: Detroit Edison's Fuel Mix, 20094.3

Nuclear 16.5%

Oil

0.2%

Renewables 1.4%

NaturalGas 1.4%

Coal 80.5%

Nuclear

NaturalGas

Oil

Renewables

Coal



4.3 Energy



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GREATLAKESREGIONENERGY

RESOURCES

U.S.electricitysoldtoCanadaissourcedvia5citDetroit,Michigan;GreatFalls,Montana;Portland

Ogdensburg,NewYork;andPembina,NorthDako

ThemaphighlightsamarkedshifttowardsmorerenewableenergysourcesinCanada,includingH

electricandThermalElectricFacilities.

Incontrast,thenorthernStatesofAmericawhichtheGreatLakesstillrelypredominantlyuponnon

renewableenergysourcessuchascoalandnatur

In2009,DetroitshowedtheseverestrateofdecliamongAmericansuppliersofelectricityimported

Canada=$102.8million,down81.4%(17.9%ofC

Imports)

The

Canadian

market

for

imported

electricity

fromrenewableresourcesisdeclining.

SOURCE:1.ENERGYINFORMATIONADMINISTRATION&CANADIANCENTREFORENERGY

4.3




4.3 Energy



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COALBASINAPOTENTIALLYEXPENS

SOURCEOFENERGY

DetroitEdisonEnergy(DTE)burnsabout80percentmorecothan35yearsago.

Morethan70percentofthe22milliontonsofcoalburnedEdisonpowerplantsislowersulphurwesterncoal.

DTEimportswesternsubbituminouscoalstoreduceSO2e

Inaddition,twonewfluegasdesulfurization(FGD)unitscam

lineattheMonroePowerPlantin2009toreduceSO2emisevenfurtherinpreparationforanticipatedfederalregulatio

Largedepositsofcoalexistthroughoutthemiddleofthesta

howevernewcoalfacilitiesareenormouslycostlytobuilda

notconsideredeconomicalatpresentasdemandisflatand

possiblydeclining.

OilseaportsexistinDetroitandPortHuron.


Source:MichiganDNRE

4.3



4.3 Energy



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NATURALGASISANIMPORTA

REGIONALRESOURCE

MichiganhasmorenaturalgasreservesthananyStateintheGreatLakesregion.

TheAntrimnaturalgasfields,inthenorthernLoPeninsula,areamongthelargestintheNation.

MichiganhasthemostundergroundnaturalgascapacityofanyStateintheNationandsupplies

gastoneighbouringStatesduringhighdemand

months.

NaturalgasheatsroughlyfourfifthsofMichigan


Source:USEnergyAdministration

4.3



4.3 Energy



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NEGLIGABLEUSEOFRENEWA

Currentlylessthan2%oftheelectricitygenerateMichiganisfromrenewableso

Documents

Policy Audit Topics: City Systems - Infrastructure, Transportation & Sustainability